About this Show

Closing Bell With Maria Bartiromo

News/Business. Maria Bartiromo. Analysis of the day's winners and losers in the stock market. New.

NETWORK

DURATION
01:00:00

RATING

SCANNED IN
San Francisco, CA, USA

SOURCE
Comcast Cable

TUNER
Virtual Ch. 58 (CNBC)

VIDEO CODEC
mpeg2video

AUDIO CODEC
ac3

PIXEL WIDTH
704

PIXEL HEIGHT
480

TOPIC FREQUENCY

Us 16, S&p 12, U.s. 8, Citibank 7, Sheila Bair 5, Europe 4, United States 3, Josh 3, Robert Frank 3, Aflac 3, Ford 3, Schwab 2, Julia Boorstin 2, Maria 2, Josh Lipton 2, Valassis 2, Ubs 2, Rick Santelli 2, Washington 2, Japan 2,
Borrow a DVD
of this show
  CNBC    Closing Bell With Maria Bartiromo    News/Business. Maria Bartiromo. Analysis of the  
   day's winners and losers in the stock market. New.  

    February 6, 2013
    4:00 - 5:00pm EST  

4:00pm
that's one i'm definitely going to take a look at. >> we look so much at our own fundamentals and look at our own fed, but how much of what's going on right now sim pacted or the result of what's going on, for example, in japan, as they are cutting rates big time, trying to bring the value of their currency down. >> right. >> taking a page from our own fed's "playbook." >> seen what it's doing here. >> their stock market is going today. >> an astronomical gain. what accommodative fiscal policy does for the market, since the re-election of president obama since a 12% gain in the dow. japan is looking to cash in. still worried about what we're seeing in europe. if all the companies keep debasing their currencies, where are we going, all on the same track. right now the way to put the money is put it in the u.s. japan has obviously benefitted from that. >> you have not been alone on the floor here among your trading brethren who have been skeptical of this rally as it continued. some others though have thrown in the towel and are going with
4:01pm
the trend higher. are you still skeptical? >> i'm definitely still skeptical. >> okay. i think the risk is to the down side. if we get a 5% pullback, which would not be bad for the market, are people going to put their money to work. putting it into work when times are good. when times are bad, markets back off and that's where markets seem to accelerate. >> going out neither highs of the day with the dow up about 5.25 points here, and the s&p up a fraction right now. stand by. a lot of earnings news coming your way. plus former fdic chair sheila bair coming on the second hour of "closing bell." and it is 4:00 on wall street. do you know where your money is? hi, everybody. welcome back to the "closing bell." i'm maria bartiromo on the floor of the new york stock exchange. it will be a photo finish for the markets today. the dow and s&p 500 trying to close in positive territory after being in the red for much of the day today. looks like we are just under 14,000 with a gain on the session of 6.5 points.
4:02pm
as you can see there, 13,985 on the industrial average. this market does not want to go down. we are moments away from a batch of earnings tonight including visa and news corp. we'll see what the numbers are and see if they set the tone for tomorrow but, first, take a look at the market action. michael yosikami and michael pento and chad morganlander and our own rick santelli. good to see you, guys. thanks for joining us. michael, beginning with you. >> thank you. >> more of a lack of market action. what do you make of that? >> pento or yokishami? which michael? >> michael yokishami. >> the market is treading water after a significant run, and i do think the market is probably going to be in a parallel range for a while until we get more resolution on what's happening with sequestration, state of the union speech. the market has had a good run. i don't think investors should get too excited that we'll have a continual advance like we've had in january. it's my view that half of the gains that we've seen for the
4:03pm
year, that we will see for the year have already happened in january, that more of the gains will come from international markets which will bounce back, and i think in particular, maria, people need to pay attention with what's happening to treasures. massive selloff on treasuries, that means something. the bond market is trying to communicate. >> wait a second. let's talk about that for a second because a massive increase in treasury prices, selloff in treasury prices means that yields are moving up. is it going to be competitive enough of a yield to actually get money coming out of stocks and into fixed income once again? >> no, i don't think so. i don't think so. >> michael pento, where are you on that? are we seeing a rotation out of fixed income into stocks? or is this money coming from the sloins? >> you don't need everybody to sell their bonds for stocks to go higher. here's what you need to know. in 2007 the ten-year note was over 5% and the fed's fund rate was 5% and then the fed took interest rates to 0%, that was the bond market and now they are
4:04pm
all trying to destroy their currencies so you have to go long stocks. that's the most important thing you need to know, and i would continue to say long until the european bond markets bow out. >> michael yoshikami made a good point about treasuries and yields. would you buy into that, that the bond market is trying to buy something and yields are moving up? >> yields are moving up because the u.s. economy is getting somewhat better so you've had a string of very positive economic data points that you can point to. and that is what has propelled the equity markets higher and also why bonds have sold off, but there's also a second reason. there's also a second reason why the markets are going higher, and that is because there's a wave of liquidity, courtesy of the federal reserve, the ecb as well as the bank of tokyo, currently the new actor -- >> which data point sent bond
4:05pm
yields higher, the negative gdp or increase in the unemployment rate? >> you're right. we haven't had such great economic data. >> that's not true. the ism number is well above 50, okay? you have auto sales that are not 9 million or 10 million but they are 15 million. you have real estate prices that are rising, and, yes, did you have a poor print for q4, exactly you did, but you also had private payroll numbers that were up to 200,000 for the -- for november and december, and they will probably up the private payroll expectation again for what we just saw that 165 print, so, you know, there are positive economic data points to point to. >> clearly the stock market and earnings aren't running away from us here. >> no, you're right about that, and i'll tell you something. earnings, okay, are up year over year about 4%, and that includes stock buyback, so you're 100% right. the next thing you need to see
4:06pm
for this to have another material move higher on the market is for earnings to start rising. our expectation is 105 on s&p earnings for 2013, and that's way below the market consensus of 113. >> well, earnings -- earnings are already surprising on the upside. most companies that have reported so far are actually exceeding expectations and the guidance is very soft. >> because year over year it's beenlousy. >> and what about revenue? what about revenue? >> the market doesn't care about last year. the market cares about this quarter. >> you want a good indication of end-market demand don't you want to look at revenue compared to earnings? >> that's flat, zero. >> flat year over year which you're going to have to start to see a feedback loop from the positive economic data points here in the united states that are going to start hitting the revenue line, and that -- that remains to be seen. so, you know, our s&p target is 1575 which is roughly about 5% higher from here. >> i would agree with that sglum
4:07pm
what do you think, rick santelli? jump in here. >> i don't know what bond market that group is looking at, but i see a bond market at a 196 yield, up a whopping 20 basis points for the first five weeks of 2013. i remember a day when testing 2% was heresy for a ten-year note. covering we're hovering at 14,000 doesn't look to me like the bond market is squeamish. it looked like it priced out some of the funding issues in europe, as many of the southern countries have shaved hundreds of basis points off their funding. their economic outlook still looks bleak and 157,000 jobs shows momentum is already deteriorating from what was really revision jobs added and the pull forward to the fiscal cliff. it doesn't sound like the same canvas everybody else is describing. >> rick, let me ask you this. what are you looking for? what is a data point you look for for interest rates to start going up? >> well, first of all, 85
4:08pm
billion is an interesting place to start. that impacts the fed's buying, and i like to keep it simple. i'm sorry even though gdp is now the -- the new field for european-like analysis to say it's good enough, it isn't good enough. i understand defense spending was down so ramp it up to 1.5%. still terrible. to me all of these arguments just fall flat when we can't get the horsepower the country's numbers to be better and that's with a small positive win on housing which at some point in 2012 hit its infliction point from taking away to adding into gd gdp. >> the issue that you have here -- the issue that you have here isn't the economy is at escape velocity. you're not where the u.s. economy is growing at 3% to 4%. >> let me interrupt you because
4:09pm
we have the number on visas. 182 a share is where we're reporting. 182 a share compares to an estimate of 179. the earnings on the bottom line better than expected. here is revenue. 2.85 billion, also better than expected because it was 2.82 billion which was the estimate. vite visa is out and the stock trades up in the extended hour. 182 on 2.85 billion in revenue. >> very positive. >> let get reaction on the visa numbers. joining me to talk more about that in terms of reaction is gill laurier of webbush. thanks for seeing you. >> thanks for having me. >> what's your take on this, 182, 2.85 billion revenue? >> i'm most impressed by the upside to revenue. it means that the visa is still growing more on the 11%, 12% range as they did last year as opposed to slowing down to the 10%, 11% which we were previously expecting and i think
4:10pm
master card is on the way to doing. that upside is impressive, and with their very high operating margins it translated to bottom line upside as well. >> so what would you do here. >> reporter:? what are you looking for in terms of metrics to be a believer that this momentum continues next quarter and the rest of the year? >> well, in terms of the metrics looking at the growth in process transactions, cross-border transactions, if those have gone back to the double digit range, that would make this growth a little more sustainable. most of the growth last year had to do with their ability to price better and positive and for the growth to continue going ford at the double-digit rate they need them up as well. >> the stock is at $162. would you put new capital in this stock right here? >> i think it's certainly a core holding for a lot of people, but i prefer companies that have accelerating growth this year and next, a couple of the
4:11pm
companies i cover, ebay and intuit trading with accelerating revenueses and visa and mastercard have decelerating revenues and higher multiples. >> all right. we'll leave it there. good to talk to you. appreciate t.news corp earnings, they are out as well and right over to julia boorstin we go with the numbers. >> reporter: news corp's revenues came in at $9.43 billion, up from $8.9 billion a year ago, and it's higher than expectations. wall street was looking for $9.82. eps came in at 44 cents, the adjusted numbers. expectations were 43 cents, a penny better than expected and for you cents better than the eps from a year ago. breaking down the various divisions, news corp's strength, cable network programming the most profitable division seeing an increase of 7% from a year ago. interesting that they are seeing strength in advertising. advertising revenue domestically
4:12pm
at cable channel was up 8% and international advertising revenue improved 29%, an interesting story. cable expenses do continue to grow, up 26% in the quarter, and the only division that actually swung to an operating loss was the direct broadcast satellite television, but otherwise we saw improvements in the publishing segment which is an interesting note there. back over to you. >> thank you so much. julia boorstin, much more ahead on this jam packed edition of the "closing bell." somebody is warning that the markets could take a tumble unless the government avoids automatic spending cuts that are slated to hit march 1. a bear and bull debate and former fdic chair sheila bair here with an interview you'll see here and nowhere else. wait until you hear what she has to say on the government lawsuit against standard & poor's. and also is the best thing you can do for your kids is leave them nothing. >> reporter: a look at whether inherited wealth is poisonous
4:13pm
for kids, and one multi-millionaire backing that up by cutting his children out. that story next. [ woman ] don't forget the yard work!
4:14pm
okay. [ male announcer ] with citibank's popmoney, dan can easily send money by email right from his citibank account. nice job ben. [ male announcer ] next up, the gutters. citibank popmoney. easier banking. standard at citibank.
4:15pm
to deposit checks from anywhere. [ wind howling ] easier than actually going to the bank. mobile check deposit. easier banking. standard at citibank.
4:16pm
welcome back. the earnings are pile up in the extended hours. josh lipton with all the action. over to you, josh. >> reporter: hey, maria. let's get you caught up starting off with green mountain green mountain is getting absolutely hammered here in the after hours. it is down some 10%. green mountain beats for this quarter. remember, the street was look are for about 65 cents. green mountain clocks in with 76 cents, but the sales forecast below consensus. another one at checkout is yelp. yelp also down in the after hours here. yelp, remember, the street was looking for a loss, maria, of 5 cents and it clocks in with a loss of 8 cents. they did beat on the top line but also yelp here down in the after hours. more earnings coming, maria. we'll seep you updated. >> all right, josh. thank you so much. we are 22 days away from the so-called sequestration dead line. that's when deep federal spending cuts will automatically kick in. if congress fails to come up with a solution will marks face
4:17pm
it or be in for a tumble? >> one guest says the market will survive but cnbc contributor michael farr is less optimistic. michael, you're worried? >> i'm worried, maria. i'm kind of a paid worrier that way, but, yes, given what we've seen in the market. we've seen a lot of market sustained by a whole lot of government spending, both from the monetary side and the fiscal side. if we see $120 billion a year in cuts that come in, certainly that's going to be a negative on the markets, and i think the markets will react pretty quickly. >> robert, what about that? we've already seen sort of a scare to the edge at the end of the year, and the market kept going higher. you say if we hit sequestration we may see a temporary pullback, but you still think the rally goes on? >> yeah, i agree absolutely with that, maria. the market's come pretty far pretty fast. january was an outstanding month for the s&p 500, so i think even
4:18pm
without the sequestration, the market is a bit vulnerable here, and that might be catalyst for a little bit of a selloff, but you have to understand at the end of the day i manage money just as much as mr. farr does for people and we have to place people's money where they can get a return. sitting cash is not going to do it. the money has to flow back into equities. >> isn't that the bottom line, michael, very few alternatives? bottom line here, even if we were to see a selloff, it'sing if to be met with a buy on the dip mentality? >> well, i think, maria, yes. . i think you'll see investors come in and buy the dips and perhaps longer term they should. look at pe ratios and other metrix. stocks are not wildly overvalued. i think that they are fully valued. yeah, but it's not what investors want to do, you know. investors will looking and feel good now that markets are up over 20% in the past 14 months.
4:19pm
now they feel like maybe they want to buy stocks. i think, you know, i agree with my colleagues. you see the sequestration coming and hit. you see and really take a look at a potential of, you know, $1.2 trillion over the next ten years in terms of spending cuts by the government. with the markets where they are, you could certainly see a 10% correction very quickly. that doesn't mean run and sell everything. you stay a long-term investors. >> robert, what about that? would you expect a 10% selloff? >> i don't expect anything of that magnitude. really looking for something on the market on a technical basis is extended so the pullback to the 50-day moving action, that would be a healthy correction, 5% from where we're trading and as an investor you could think globally so you don't have to be placing your money here in the united states, demographics against us and debt burdens against us. investors should now be looking at emerging markets and
4:20pm
international markets for the next leg up and i think actually those markets from this point forward will outperform until the end of the year. >> how do you want to do that, do that through multi-nationals in the u.s. or through the local exchanges internationally, how do you want to get a piece of that international action then, robert? >> yeah, i think you could do it both ways. a stock like disney that reported a great earnings, if you see a pullback from the sequestration, can you play into that. they are expanding into a couple of years into shanghai, expecting 7 million visitors that year in that theme park. that's a great way to do it, but the bigger play is really places like emerging markets and frontier markets, places like vietnam with a big correction. those markets are trading 9 times forward earnings versus 15 on the s&p and that gdp looks 6.5% 207% versus 2 which could quickly be cut in half here in the united states here if the sequestration goes through. >> leave it there. gentlemen, thank you very much. appreciate your time tonight. see you soon. after the break, we'll find out
4:21pm
what sheila bair thinks of the justice department's lawsuit against standard & poor's. the former fdic chair speaks with me and also her view from the continuing fallout from the interest rate rigging scandal where she thinks too big to fail banks should be broken up and how safe is your bake you a counts if hackers can reach the hauled owed cyber space of the federal reserve? yes, it's a scary story. that's coming up. this is america.
4:22pm
4:23pm
we don't let frequent heartburn come between us and what we love. so if you're one of them people who gets heartburn and then treats day after day... block the acid with prilosec otc and don't get heartburn in the first place! [ male announcer ] one pill each morning. 24 hours. zero heartburn. and don't get heartburn in the first place! (announcer) scottrade knows our and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar lets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade. voted "best investment services company." green mountain coffee
4:24pm
roasters shares lower after reported earnings. let's get to herb greenberg and joins us now with his analysis. herb, over to you. >> what's interesting about this one is people thought this would be a blowout quarter. i was sitting here thinking this thing come out. great news. stocks goes up and even though the stock has really risen and some people wonder how the stock got to where it is today from where it was, but it's interesting is k-cup sales were below expectations, and the gross margins were sort of -- i sort of was galvanized on that because you have five percentage points of gross margin from lower input costs and lower warranty reserves and lower returns. so really even though the gross margin went up, you could argue it actually went down if you wanted to look at it from a quality perspective, and the company also said while they expect growth will continue to moderate in the overall total coffee and espresso maker category, they expect their share of the category to continue to increase to which i say what will the margin of that be, because we have more competition coming in, and there's, you know, there's thought that down the road new competitors come in and they use
4:25pm
competitors to make the product or they get a better price from green mountain, so the stories -- this story is an interesting one. the new ceo is in the seat right now. he'll be doing the call a little later. see what he says and how the market reacts. it continues to be a great evolving story. maria, back to you. >> thank you so much. today's wall street news includes another settlement in the libor interest rate fixing scream. now details on the e-mail traffic at s&p which is being sued by the government over ratings leading up to the financial crisis. who better to help understand it all than sheila bair, former chair of the federal deposit chairman corporation. thanks for joining us. >> thanks for having me. >> are you at all surprised by the department of justice lawsuit against s&p, i mean, so many years late mer. >> yeah, it really took a long time, the fact that they have been singled out, don't know if there's other shoes to drop with the other federal ratings agency, but it's a very serious problem for s&p. you know, there's a lot of -- this administration has received bipartisan criticism for not
4:26pm
holding enough institutions to account, those who contributed to the subprime crisis and it looks like s&p has a big target on their forehead right now. >> yeah. >> they are the ones the government wants to lead to the pillory so i think it's a serious problem. >> some people are wondering why only s&p. they are pointing out it was the s&p that downgraded the united states' rating. >> right. >> what about that, anything sinister here? >> i hope not. i mean that's the reason for the "wall street journal" this morning, hopefully our government does not bring enforcement actions on that basis. that would be very wrong. still may be a tough case to prove. they are using this novel banking statute, alleging that, you know, banks insured banks and credit unions were hurt by this, and that's the basies that they are suing. still need to show fraud even though it's a preponderance of the evidence which can be tough. you know, there were clearly mistakes that all the ratings agencies made. was that something that they were aware of, or was it just
4:27pm
competence or -- or just bad judgment? that's the question. those will the types of burden of proof issues the justice department will have to carry. >> you know, it's interesting that, you know, main street blames the banks for the financial crisis, we know that, it's very clear, but this suit identifies banks as the victims, adding 5 billion in losses by financial institutions. >> it's very novel, and i think they use the statute because it's easier -- if it's a criminal case it would have to be beyond a reasonable doubt and that's a much harder burden of proof so it is a very novel use of the statute. but they are reaching into the tool kit, and i think that's appropriate, but, right, the main street reading this, wait a minute. banks contributed to this, too, so they are alleging that the banks were victimized in this. kind of hard to explain. >> what about today's news? we've got $612 million settlement by rbs for libor manipulations. ubs, barclays also settled. more banks in the crosshairs. >> yes. >> is the game rigged?
4:28pm
what's going on, sheila? >> well, i hope not. there have been some reforms in process for libor. some people think libor should be replaced with -- get rid of this judgmental survey and basis rate on actual transactions. at this point the regulators won't go that direction but clearly at lot more shoes to drop on this, and i think this is going to be years, a lot of private litigationing a well. i would say this is one of the cases where at least individuals -- there should be criminal actions brought against the individuals on the trading desk who were doing this. i believe a couple of actions have been brought against a couple of ubs traders. i would hope at least here they will be bringing criminal cases and sending people to jail. outrageous what was going on. >> in europe they are planning a big breakup of the banks partly because of a result of what happened in the 2008 financial crisis, and here senators brown and warren like the idea. they are sitting on important committees, finance and banking committees. do you see a breakup of the banks on the horizon? >> as you and i discussed
4:29pm
before, i would like to see a market-driven solution, the megabanks, especially city and b of a have not performed well, even going back before the crisis, trading at significant discounts to tangible book value. so where the government could play a positive role is getting more information out to investors so they can decide maybe the economically best solution for this is a market-driven breakup, but right now it's very difficult again the inadequate disclosures to see how profitable each business line is because the mega banks don't allocate their capital expenses according to their business line. so i think the government has probably not looked at that as much as they should, and we need to get market information out. i think the market can provide a much faster solution than government, but you're right. they are still continuing interest in congress on some type of size limit or breakup proposal. >> i guess, isn't it difficult to see a different, you know, setup in europe than the u.s.? i mean, do we need a global standard? >> yeah.
4:30pm
>> is it even logical to think that we have one standard across the world? >> well, i think that would be years in the making, and they are really not going for a full tilt breakup. they are going for subsidiarization so the hedge fund operations and trading operations need to be broken out and segregated from the traditional banking activities and firewalled off. not complete breakups but can stay in the same overall organization but they have to be firewalled for government insured deposits or access to central bank lending so it's not a complete breakup, but it is more dramatic than the approach we're doing here. i personally think that the regulators should do more to restrict the use of insured deposits to more traditional lending. the type of thing, for instance, we saw with london whale and jpmorgan chase, a completely inappropriate use of insured deposits but there are regulatory authorities to deal with that. congress wouldn't necessarily have to act, but it's something that both the fdic and the feds
4:31pm
should be very focused on. >> well, i mean, do you think we will see sort of a structural change in the banking system? >> i -- i don't know. i think that's -- that's still a work in progress. my guess is there will be a lot of debate and activity in congress on size limits or breakups and nothing will happen. i'm hoping we will find market-driven solutions that regulators can facilitate by getting better information out to the market but i don't think that yet. >> in terms of the overall environment right now, where are we in terms of trust and sentiment? we've got the libor scandal. we continue to see sort of upsets in the banking world. >> right. >> do you think that a lot has changed, or not? >> it is -- it is had, and i don't think a lot has changed. it's gotten marginally better, but the reforms have been pretty incremental, and most of the dodd/frank rules haven't even been finalized yet so that does concern me, and i think as the public watches this, they are
4:32pm
losing confidence in the regulators as well to get this job done. they need to know that the regulatory community is, you know, standing up for them and policing these institutions appropriately, and whether the industry wants to acknowledge that or not, that's in the industry's interest for the public, and their customers to view them as being regulated by people of integrity, so i don't. i'm disappointed at the pace of reform. we haven't seen a lot of changes other than very incremental changes, but i'm hoping that maybe this year will be the year when we can finally get the rules in place, and i'm hoping that the industry will work collaboratively with the regulators and get it done and we can have more certainty, too, which would be good for the business as opposed to this continuing uncertainty caused by a lot of industry lobbying. >> what about the federal reserve, where are you for this camp in terms of some people say this is manipulation, keeping rates at such rock bottom levels? basically forcing money into hard assets like stocks and like real estate? >> right. >> do you think this is
4:33pm
appropriate? >> well, i disagree with it. i've been disagreeing for a long time. think it's being done with the best of motives. i think the fed is doing this because our elected officials are not doing what they need to do in terms of our fiscal solution, cleaning out the tax code, immigration reform. maybe we'll have some progress on that, so they kind of feel like they are the only game in up to, but at some point i think the risks are much more substantial than any potential benefit. we passed that point a long time ago. this was certainly justified in 2008 and 2009. but since then, you know, it is, it's pushing on a string, and ironically i've been saying this and john taylor had a real good op-ed in the "wall street journal" last week. if you want more lending, you know, banks can't get enough of a return on making a loan these days given the other risks that are involved, and if you look at community banks that -- that's their model. they take deposits and make loans. they are being killed. some will take their cheap money
4:34pm
and put it in securities or do refis or investment banking. they are doing okay in this environment, but those whose bread and butter are making lending are getting hurt by this. this is hurting lending. it's not helping. >> sheila, always nice to have you on the program. >> you bet. >> sheila bair joining us. up next, good-bye saturdays. the post office plans to drop saturday delivery of first class mail. while some are up in arms, wait until you hear what industry would benefit big-time from the post office's money-saving money and another day another online security breach. this time at the federal reserve chairman. if hackers can break into the central bank's websites, how safe are the rest of us? internet security front and center on the other side of the bank. do silver spoons necessarily spol children? our wealth editor robert frank on the effects of riches on the kids. back in a moment. this is $100,000. we asked total strangers to watch it for us.
4:35pm
thank you so much. i appreciate it. i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money? if your bank takes more money than a stranger, you need an ally. ally bank. your money needs an ally. tdd#: 1-800-345-2550 after that, it's on to germany. tdd#: 1-800-345-2550 then tonight, i'm trading 9500 miles away in japan. tdd#: 1-800-345-2550 with the new global account from schwab, tdd#: 1-800-345-2550 i hunt down opportunities around the world tdd#: 1-800-345-2550 as if i'm right there. tdd#: 1-800-345-2550 and i'm in total control because i can trade tdd#: 1-800-345-2550 directly online in 12 markets in their local currencies. tdd#: 1-800-345-2550 i use their global research to get an edge. tdd#: 1-800-345-2550 their equity ratings show me how schwab tdd#: 1-800-345-2550 rates specific foreign stocks tdd#: 1-800-345-2550 based on things like fundamentals, momentum and risk. tdd#: 1-800-345-2550 and i also have access to independent
4:36pm
tdd#: 1-800-345-2550 firms like ned davis research tdd#: 1-800-345-2550 and economist intelligence unit. tdd#: 1-800-345-2550 plus, i can talk to their global specialists 24/7. tdd#: 1-800-345-2550 and trade in my global account commission-free tdd#: 1-800-345-2550 through march 2013. tdd#: 1-800-345-2550 best part... no jet lag. tdd#: 1-800-345-2550 call 1-877-561-5445 tdd#: 1-800-345-2550 and a global specialist tdd#: 1-800-345-2550 will help you get started today. makes it easy for anne to manage her finances when she's on the go. even when she's not going anywhere. citibank for ipad. easier banking. standard at citibank.
4:37pm
to deposit checks from anywhere. [ wind howling ] easier than actually going to the bank. mobile check deposit. easier banking. standard at citibank. talk about a high level internet attack. the federal reserve revealing they were attacked. >> reporter: just got a statement from the federal reserve in the past few minute. the hack attack didn't affect any critical operations of the federal reserve's system but
4:38pm
hackers did manage to breach an internal website by exploiting a temporary vulnerability in what it called a vendor product. now the hacker was able to obtain the information, the fed said, and reports say the group anonymous claimed to have access the personal information of thousands of american bankers and published it on the web. in a warning to affected executives, the fed said mailing addresses, business, phone, mobile phone, business e-mail and fax numbers had been published, according to reuters. the internal site targeted in the attack allows bank executives to inform the fed if their facilities have been damaged in a natural disaster. now the fed said the problem that allowed access to the system was fixed shortly after it was discovered. maria? >> thank you, eamon. our question is this. if you can hack into the federal reserve is anything safe? joining me is pat calhoun, senior vice president and general manager for network security at mac afee. good to see you, sir. thanks for joining us. >> thanks for having me. >> how do you protect yourself? >> well, you know, i get to work
4:39pm
with customers every day, and one of the things that we've noticed is that cyber criminals have become very, very patient. in this particular case what we're seeing is that surveillance has become a 7/24 activity, actually monitoring networks 7/24, looking for one weak link in the chain so what we've seen isn't much of a surprise. we're seeing this across every industry, so this just happens to be that they found that one vulnerability. >> yeah, but, i mean, anonymous can hack into the fed and get information on 4,000 bank executives, are any of us really safe? no, right in the answer is no. >> well, in the end it's really about making sure that corporations actually put multiple layers of defense to protect the data. you know, a lot of what we're seeing is people are trying to prevent bad things from coming into the network, but really what's important is making sure good data doesn't exit the networks and we're seeing a lot more businesses make that a priority. >> how vulnerable are our important institutions? i'm talking about the banks?
4:40pm
they have all been hacked. more recently it was the "new york times." what about the defense department, other national security entities? >> i mean, banking industries, governments and so on, you know, have very, very strong layers of defense, and in this particular case it was one vulnerability. you know, i can't speak to the particular vulnerability, but in terms of the layers of defense, what i'm seeing and the customers that i work with every day is they are taking this extremely seriously. >> okay. is anonymous the most sophisticated hacker out there? do we know, you know, who is most sophisticated? what about the chinese? who is more dangerous, the thieves or the spies? >> yeah, what we're seeing is an increase in finding around cyber terrorism and cyber criminals. it's really organized crime and nation states. those are the two most, i guess, the highest threats at this point. >> okay. is there any way to prevent it? >> well, you can't -- you can't have 100% guarantee, but what you need to do is need to make sure you're putting multiple layers of defense. if you have multiple layers of
4:41pm
defense it's extremely difficult for cyber criminals. it is absolutely possible to protect yourself. >> what can you do and what steps can you do to actually feel like you've done everything you can do? >> it's really about ebb suring that as you -- as you protect your network, that all of the pieces of the network actually collaborate together and to make sure that you have a lot of visibility into what's going on and visibility is one of the big challenges. a lot of organizations just don't know what's going on in the network and that's really an area that the industry has strepd up and making sure there's a lot more visibility of what's going on, who is penetrating your network and doing reconnaissance on the network so that's become a top priority for most businesses these days. >> we'll leave it there. good to have you on the program. thanks so much. >> we'll see you soon. >> the movers and shakers, josh lipton all over it. >> hi, josh. mar yashs let's get you caught up on some of the movers. green mountain is getting absolutely hammered after hours. it beats on the bottom line and revenue growth comes in at 16%. it was the outlook here.
4:42pm
green mountain giving a forecast of 14% to 18% revenue growth for the current quarter. the street was looking for 20%. green mountain really looking for moderating growth in overall coffee and espregs presso industry. green mountain down about 10%. a couple others to get you caught up with. social media website yelp in the red after hours. a wider than expected loss. the street was looking for a loss of five cents and yelp's loss clocks in at eight cents. all state is reporting another fourth quarter profits and sharply higher on catastrophe losses due to superstorm sandy. operating results and network premiums topped analyst analysts. prudential financial also missed. maria, we'll keep you updated as more news crosses. >> thank you. neither snow nor rain nor heat nor gloom overnight can stop the poufs. oh, no, saturday can. the postal service plans to stop saturday delivery of first class mail for good.
4:43pm
details on that next and find out which industry plans to benefit from the paufss cutback. you'll never guess what it is. and if you love your kids, should you write them out of your will? one multi-millionaire seems to suggest yes. that's a story coming up next. stay with us. how do you keep an older car running like new? you ask a ford customer. when they tell you that you need your oil changed you got to bring it in. if your tires need to be rotated, you have to get that done as well. jackie, tell me why somebody should bring they're car here to the ford dealership for service instead of any one of those other places out there. they are going to take care of my car because this is where it came from. price is right no problem,
4:44pm
they make you feel like you're a family. get a synthetic blend oil change, tire rotation and much more, $29.95 after $10.00 rebate. if you take care of your car your car will take care of you.
4:45pm
bob will retire when he's 153, which would be fine if bob were a vampire. but he's not. ♪ he's an architect with two kids and a mortgage. luckily, he found someone who gave him a fresh perspective on his portfolio. and with some planning and effort, hopefully bob can retire at a more appropriate age. it's not rocket science. it's just common sense. from td ameritrade.
4:46pm
welcome back. well, the postal service is planning to end saturday delivery of first class mail beginning in august. the move aimed at putting dent in the ocean of red ink in the u.s. post office. it's piling up, the losses. hampton pearson with more now from washington. hi, hamp. >> reporter: hi, maria. you know, the post office, believe it or not, is losing about $36 million a day, and it's simply not waiting any longer for permission from congress to shut down saturday mail delivery, if you will, moving to five-day service in six months in early august. the postal service goes to a five day a week delivery service for letters to homes and businesses. they will still be six day a week package delivery because that part of the business is actually growing. now for decades, congress has banned cutting back to five-day delivery in its appropriations bills, but there is a postal window of opportunity because the federal government is operating right now under a temporary spending bill.
4:47pm
>> it's our interpretation that the fact that we are with the crw being paid for services and not already appropriated, we can move forward and that's our opinion. there may be people that disagree. that's okay. we have six or seven weeks to get it right. get it off the books and let's move ahead with the six day of packages and five days of mail. >> now, capitol hill lawmakers who actually support postal service reform say basically cutting back on service, on saturdays, is frankly the best short-term cost-saving option for embattled postal service. >> today is a good day for americans because this is a responsible action by the post office. i understand they have lost, you know, they are losing tens of billions of dollars each year. they have defaulted on over $11 billion of their obligation so
4:48pm
this money-saving smart move is going to be a step in right sizing the post office. >> reporter: not surprisingly the head of the letter carriers union calls the move disastrous, not just for letter carriers, but for rural areas and the elderly. the postal service, however, says it has its own market research that shows about 80% of its customers support the idea of cutting back to just five-day delivery. maria? >> all right. thanks so much. hampton pearson, who would have thunk it. the post office moves to end saturday delivery of first class mail. could spell good news for the newspaper industry. so how? brian schactman has more on thattage. over to you, brian. >> interesting concept, maria. take a look at some of the newspaper stocks and how they did, "washington post," "new york times," all outperforming the broader markets. news corp did not, and i'll have a possible explanation for that in a minute, but, first, the newspapers. how would they benefit from the end of saturday mail delivery? well, a lot of the direct mail and coupons destined for your mail docks could end up in your
4:49pm
sunday paper. i talked to a lot of analysts today who cover media companies. sunday papers still generate a lot of revenue mainly because of the inserts and demand for them. getting more business in this sector could be an unintended consequence and a benefit. look at the price action on the companies heavily leveraged in mail promotion. valassis hit hard. less than 1% of their deliveries are on saturday so maybe a bit of the selloff is unwarranted. news corp, yes, news corp is a key player here. valassis stock, worse shape in the trading day, probably because they are more known in that particular space. perhaps both could win here though. if they get solid rates to go more into newspapers, it might not be the same reach, but in that scenario the couponers could find a home and the newspapers could get that added revenue. just a quick fyi, maria. people are interested in ups and fedex, ups flat on the day and fedex up 1%. ups would not comment, but fedex
4:50pm
did tell me in a statement while it's too early to say that precisely what the eventual impact will be from the u.s. postal service proposed saturday delivery changes it appears the effect will be minimal, end quote and, of course, fedex is much more closely tied to the u.s. postal service than ups and, remember, they are customer and suppliers getting about $1.5 billion in revenue from the usps. >> bri thank you so much. folks should call their newspaper and see if they are going to deliver it then because they note post office won't. >> see-saw day for the markets and we'll get it moving from the starts. our panel of wall street pros will chime in on that next, and is inherited wealth a bad thing for your kids? wealth editor rob frank here on how much money to leave your kids. back in a moment. combining your customized charts with leading-edge analysis tools from recognia so you can quickly spot key trends and possible entry and exit points. we like this idea so much
4:51pm
that we've applied for a patent. i'm colin beck of fidelity investments. our integrated technical analysis is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses, i got a medicare supplement insurance plan. [ male announcer ] if you're eligible for medicare, you may know it only covers about 80% of your part b medical expenses. the rest is up to you. call and find out about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement plans, it could save you thousands in out-of-pocket costs. call now to request your free decision guide. i've been with my doctor for 12 years. now i know i'll be able to stick with him. you'll be able to visit any doctor or hospital that accepts medicare patients. plus, there are no networks,
4:52pm
and you never need a referral. see why millions of people have already enrolled in the only medicare supplement insurance plans endorsed by aarp. don't wait. call now.
4:53pm
welcome back. when it comes to how much money parents should leave their children, the answers are all over the map. particularly if you're talking about the kind of money with lots of zeros on it. wealth editor robert frank is running through the competing philosophies and one very wealthy man who has a definite opinion on this. robert? >> that's right. graham tuckwell sails he is protecting his kids by giving away their inter hans. he made a fortune from etfs. he's giving $50 million for
4:54pm
college scholarships, rather than giving it to his kids. he said, quote, lots of money is poisonous to have. if they create things themselves, it's a sense of achievement. where if you just give them stuff, it almost destroys their desire to do things and you actually end up with kids who are worse off. is he right? well, paris hilton is the stair owe typical silver spooner. but there are plenty of other examples of rich kids turning out okay and building on their parents success. the power couple ivanka trump and jared kushner, and then there's the ziff family. to me, warren buffett said it best. he said that you should leave your kids, quote, enough to do anything, but not enough to do nothing. you can read more on cnbc.com. maria? >> that's a great quote from buffett. thank you so much. >> thank you so much. >> robert frank. 30 seconds on the clock now. our next guests will tell us what to be prepared for tomorrow when the opening bell sounds. rob smalley is here. and tim rude from callingwood
4:55pm
group. good to see you guys. thank you for joining us. rob, 30 seconds on the clock. what happens tomorrow? >> tomorrow, i'll be looking at the mutual fund flows republicans. there's been a lot of talk about movement out of corporate bond funds into equity funds. but the numbers haven't born this out. equity saw a big drawdown in december, only to see the money come back in january. but corporate bond funds have raised over a billion dollars a week since the beginning of the year. so, not necessarily a rotation, but money coming off the sidelines. tomorrow, we get the jan numbers for the funds that report on a monthly basis, and we'll see if they confirm the weekly frien l >> terry, you're up. 30 seconds on the clock. what do you want to watch for tomorrow? >> we think traders should be watching the u.s. natural gas futures market. this market is up 4% on the week. tomorrow is our eia storage release. we think we're going to see a significant drop in the inventory report tomorrow. that, and the combination of the fact that we're now getting the tail end of winter, we'll probably start to give the
4:56pm
buyers, get those buyers nervous. we think we will close lower simply on that note by tomorrow. >> all right, we'll leave it there. tim, you're up. what are you looking for? what's going to move money? >> thanks, maria. we are anxious to get the market reaction to the critical tone of today's fha reform hearing. it's obviously a big deal for a number of good runs, but we think it's critically important because of the shrinking of the fha means fewer homes sold, fewer loans originated, lower gdp. it has a fair lending impact on banks. but lastly, what we're going to be looking at tomorrow are the jobs numbers. weak jobs, coupled with continued declines in the consumer confidence rate is going to exacerbate pressure on policy makers, going to be forced to make some fha reform. >> thank you, everybody. appreciate your time. be watching all of those stories tomorrow to move our money. receive you soon. >> thank you. when thele toings who are responsible for solving our debt deficit issues are the same ones against cost-cutting at the post
4:57pm
office, it means we're in pretty deep trouble. we'll talk about it next. stay with us. ak. surgery was successful, but he will be in a cast until it is fully healed, possibly several months. so, if the duck isn't able to work, how will he pay for his living expenses? aflac. like his rent and car payments? aflac. what about gas and groceries? aflac. cell phone? aflac, but i doubt he'll be using his phone for quite a while cause like i said, he has a fractured beak. [ male announcer ] send the aflac duck a get-well card at getwellduck.com.
4:58pm
4:59pm
riding the dog like it's a small horse is frowned upon in this establishment! luckily though, ya know, i conceal this bad boy underneath my blanket just so i can get on e-trade. check my investment portfolio, research stocks... wait, why are you taking... oh, i see...solitary. just a man and his thoughts. and a smartphone... with an e-trade app. ♪ nobody knows... [ male announcer ] e-trade. investing unleashed. and finally tonight, my observation on one of the few government entities actually looking for ways tout

Terms of Use (10 Mar 2001)